Liminal, the digital custody partner of the compromised Indian cryptocurrency exchange WazirX’s, released a statement on the purported security breach amid the current debt restructuring of the company.
In response to WazirX’s alleged “disinformation campaign,” Liminal issued an update on October 22 that provided some details regarding its involvement in the situation.
According to the statement, WazirX is still using Liminal’s digital custody services and has millions of its assets on Liminal, even after claiming that Liminal was responsible for the $235 million hack in July.
WazirX held $175 million with Liminal 75 days after the hack
According to Liminal’s statement, 75 days following the security issue, WazirX retained over $175 million in assets on its platform. It also stated: “Despite their accusations, as of today, approximately $50 million of their user assets continue to remain on wallets accessed via Liminal Infrastructure.”
WazirX was questioned by the media over Liminal’s claims, but by the time of publishing, they had not responded.
Liminal stressed that only the WazirX team is able to carry out transactions involving WazirX’s funds; it is not permitted to start such transactions.
Liminal mentions WazirX’s submission of 240,000 wallet addresses to the court
Additionally, Liminal brought up WazirX’s decision to reveal details on 240,000 wallet addresses “pursuant to the debt restructuring process” in Singapore.
WazirX made the announcement on October 17 and stated that the disclosure was not only required by the court but also reflected the exchange’s dedication to openness and its goal of “becoming one of the most open and trusted exchanges.”
According to Liminal, the data disclosure has drawn a lot of criticism for perhaps being a disinformation campaign meant to mislead users and law enforcement.
“The exchange’s exhaustive submission spanning 1,100 odd pages has sparked intense debate and concern within the cryptocurrency ecosystem,” Liminal said.
Liminal’s announcement followed CoinSwitch co-founder Ashish Singhal’s claim that, following the purported security breach in July, WazirX’s moved over $70 million in user cryptocurrency to international exchanges Bybit and KuCoin.
“We have observed a large chunk of WazirX crypto has been moved to exchanges such as Bybit and KuCoin post the incident. We have now identified the movement of $72.12 million worth of crypto to Bybit and $1.5 million funds to KuCoin,” Singhal wrote on X.
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